Saudi Aramco, the world's largest oil producer, reported a 29.5% decline in first half net profit to $62 billion as lower crude prices and weak refining margins weighed on earnings.
Revenues for the first six months of 2022 fell 20.3% to $218.6 billion compared to the year-ago period, the company said in its earnings statement on Monday. Net profit for the second quarter alone dropped 38% to $30.1 billion.
The results reflect lower crude oil prices as well challenges facing Aramco's refining and chemicals businesses. However, royalty payments declined and finance costs were lower, partially offsetting the profit drop.
Aramco's capital expenditures in the first half increased to $19.2 billion, driven by projects aimed at boosting production capacity and expanding its downstream business.
The company declared a dividend of $19.5 billion to shareholders for the first quarter and said it plans to distribute the same amount for the second quarter. For its performance-linked dividends, Aramco aims to distribute $9.9 billion in Q3.
Amin H. Nasser, Aramco's CEO and president, said the company was maintaining its largest capital spending program ever in order to increase production capacity and expand its refining business. However, he noted that a recovery in the global economy and aviation sector would be needed to support energy demand and investments.
